7th August 2013 | Posted by: Daniel Birkett | Market Analysis

Fewer tensions are expected on the spot market in the coming days while supply should also remain stable. Renewable production should remain healthy but some downside could be experienced on Friday as German wind generation is expected to decrease. The UK gas system opened short this morning so prices should rise throughout the session as additional Belgian flows are required to balance the system. Today's prices can also be found in an easy to read table on our 'current UK energy price' page.

How did the energy markets close?

Day-Ahead rose by 0.55ppt following a drop in Bacton BBL flows which led to a short system as well as an increase in supply concerns. Front-Month contracts saw little change and seasonal contracts made minor losses, taking influence from weaker Brent prices. The power curve saw similar movement to gas with Day-Ahead adding £0.15/MWh to its price to close at £47.80/MWh following a forecast of low wind availability. October-13 registered the largest price drop, losing £0.75/MWh as Annual APi2 coal hit a three year low of $82.5/tn.

How did the energy markets open?

Day-Ahead gas opened 0.70ppt higher as low flows via the Bacton BBL pipeline and lower temperatures allowed the bulls to seize control. Seasonal contracts were supported by prompt contracts as Winter-13 held firm after falling in previous sessions; opening at 71.6ppt. Day-Ahead power rose to £48.10/MWh this morning as gas-fired generation held a substantial share of the fuel mix and wind availability decreased. Front-Month prices moved higher and Far-Curve prices also made small gains while Front-Month APi2 coal climbed to $75.80/tn as Chinese demand increased.

1-year forward prices

Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity went up slightly - closing at 68.23ppt and £51.98/MWh, respectively. This can be seen in the graph below. Note: Brent Crude prices are taken from opening market data, and do not represent the price as it changes throughout the day.

Latest Brent Crude Prices

Brent prices made another loss and the Brent/ WTI spread widened further, gasoline and gasoil cracks also fell. This week's API report shows that US crude inventories fell by 3.7Mb, crude imports increased by 121 kb/d while Distillate inventories climbed by 1.5MB.